001: Money Basics: Leave beneath your means

001: Money Basics: Leave beneath your means

Odds are, you graduated from high school without being taught basic money lessons. I did. Even when I finished college, there was no personal finance course requirement. Currently, only 13 states currently require high school students to take a personal-finance course to graduate.

For those who didn’t get a chance to learn fundamentals of money management, I would like to start outlining essential lessons to help you brush up on your personal-finance knowledge.

Lesson #1-  Live beneath your means: We all heard that we need to keep a budget, but, do you know ⅔ of population rarely stick to it. What’s the way out- I propose to simply spend less than you make. Simple? No, Easy, yes. Figure out how much money you need to live on per month. Now calculate how much you make per month. Subtract expense from income. Anything left over?, if NOT, let’s review your spending, if YES, congratulations you’ve mastered the first lesson.

 
Anna Sergunina
anna@adviceonly.net

I passionately believe that in order to live a life of fulfillment and joy, we must genuinely serve each other in any way possible. I found my mission in life to serve others via financial planning. Anna regularly writes about personal finance. Her work appears on Business Insider, Nasdaq, Nerdwallet, among others. Anna is the creator of Money Flow system.

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